DigiFT, Invesco Unveil Tokenized Senior Loan Strategy for Institutional Investors

DigiFT has announced a strategic collaboration with global asset management giant Invesco to introduce a tokenized senior secured loan strategy designed for institutional and accredited investors.

This marks the first and only tokenized private-side senior loan strategy offering daily liquidity, a significant advancement in the real-world asset (RWA) tokenization space, the Singapore-based licensed on-chain exchange announced on Wednesday.

The new offering, available through DigiFT’s platform, allows investors to gain exposure to a senior secured loan portfolio managed by Invesco. Investors can subscribe and redeem tokens using USD or stablecoins (USDC, USDT), benefiting from a strategy focused on steady income generation and capital preservation. The underlying loans target companies with stable operations, reliable cash flows, and strong asset coverage, DigiFT explained.

Transforming Private Credit with Tokenization

Private credit has emerged as a dominant force in alternative investments, with global assets under management projected to reach $3 trillion by 2028, fueled by favorable macroeconomic conditions, Digift noted, citing a Moody’s study.

Noelle Lim, CEO of Invesco Singapore and head of private banks, Asia ex-Japan, highlighted the transformative potential of fund tokenization:
"On the back of rapid developments in distributed ledger technology, fund tokenization is one of the most remarkable trends. Many advantages of this innovation are finding a new home in the asset management space, transforming the industry."

As the largest alternative asset class within the RWA sector, according to rwa.xyz. tokenized private credit is revolutionizing institutional fixed-income access, providing investors with liquidity, transparency, and enhanced market efficiency,

"We believe that working with the best teams to bring the best-in-class assets on-chain is more important than being the first to market. To bring truly institutional-grade assets on-chain requires nothing less than having the best partners in the business, like Invesco," Henry Zhang, founder & CEO of DigiFT, said.

DigiFT’s collaboration with Invesco follows its recent appointment as an authorized distribution partner for another global asset manager launching a tokenized money market fund. The company has also formed partnerships with custodians such as Copper, Koimanu, Rakkar, and Zodia to ensure seamless access to tokenized RWAs for hedge funds, buy-side trading firms, and DAO treasury managers. It was awarded a Capital Markets Services (CMS) licence and obtained recognition as a Recognised Market Operator (RMO) from the Monetary Authority of Singapore in December 2023.

Looking ahead, DigiFT aims to further integrate institutional-grade yields into the Web3 ecosystem by partnering with issuers, DeFi protocols, and dApps.